Proposal: 3rd Eye Labs Service Agreement and Foundation retention of Consultants

Overview

The purpose of this proposal is to evolve the structure of Indigo Protocol’s support model by transitioning Indigo Labs out of its current role as the primary development service provider and distributing responsibilities between the already-established Indigo Foundation and a new dedicated development entity, 3rd Eye Labs (3EL). This restructuring reflects the natural progression of Indigo Protocol’s maturity and supports its decentralized future by aligning core responsibilities with specialized teams best equipped to carry them forward.

Key Points:

  • All current team members have committed to continuing their work—no one is stepping away. Responsibilities will be redistributed between the Foundation and 3rd Eye Labs for better alignment and accountability.
  • This shift enhances operational resilience and transparency while preserving continuity and momentum built by Indigo Labs.

3rd Eye Labs Service Agreement

Scope & Structure

3rd Eye Labs, founded by Cody Butz (current Indigo Labs tech lead), will assume responsibility for protocol development support. The proposed Services Agreement will cover:

  • Protocol Development & Maintenance – All areas of Indigo Protocol development and upgrades.
  • Infrastructure & Database Upkeep – Ongoing maintenance of backend systems, APIs, databases, and mission-critical infrastructure.
  • V3 Sprint Plan – A detailed roadmap and deliverables for the V3 feature suite.
  • Limited Redemption Position – a simplified on-chain order system allowing users to sell iAssets at a defined price without opening a CDP.

Zach and Aggelos (developers with Indigo Labs) will continue their roles as engineers under 3rd Eye Labs.

If this proposal is passed, the Services Agreement will cover work for the months of June through December of 2025. A new services agreement will have to be put in place for 2026 and beyond.

Planned Work & Deliverables

3rd Eye Labs agrees to provide developer support services to the Indigo Protocol. These services include, but are not limited to, the following:

  1. Protocol Maintenance
    1a. Maintain the Indigo web application, backend services, and supporting infrastructure.
    1b. Monitor bot infrastructure and automation for reliability and uptime.
  2. Foundation Technical Support
    2a. Assist the Indigo Foundation with technical questions and implementation needs.
    2b. Provide guidance on deployments and tool integrations.
  3. DAO Service Provider Support
    3a. Collaborate with or advise other DAO-contracted providers on technical matters.
    3b. Ensure seamless integration and operation of complementary services.
  4. New Feature Development
    4a. Lead the development of the Indigo V3 product suite (anticipated features include): Cardano Native Token Collateral for CDPs, CDP ownership via NFTs, Plutus V3 and latest Aiken compatibility, and Oracle integrations
    4b. Develop Limited Redemption Positions: a simplified on-chain order system allowing users to sell iAssets at a defined price without opening a CDP.
    4c. Build the Indigo Affiliates Program dashboard and backend.
    4d. Overhaul the Indigo App UI/UX to serve as a broader Cardano DeFi Hub (details forthcoming).

These services may evolve in scope over time as determined collaboratively between the Indigo Foundation, DAO governance, and 3rd Eye Labs. We expect future innovations to be deployed more consistently and potentially in a modular, a la carte manner rather than through extended, monolithic sprint cycles as with V1, V2, and V2.1—in order to maximize agility and responsiveness to community and market needs.

All deliverables—code, documentation, and materials—produced under this Agreement and paid for by the DAO will be the property of the Indigo Protocol DAO and managed on its behalf by the Indigo Foundation.

Compensation

3rd Eye Labs will perform maintenance and support services at a rate of $96 USD per hour. Services will be billed hourly and include itemized work descriptions in the monthly invoice.

Charges under this Agreement will be capped at $15,000 USD in any given month; in the case the monthly budget has been reached, work will be paused and no additional hours will be incurred. If we foresee any need to exceed the cap, 3EL will make a request to the Foundation and the Foundation will publicly share that a request was approved and why.

Payment Terms

Payments for services rendered by 3rd Eye Labs may be made in one or more of the following currencies, as mutually agreed:

  1. United States Dollars (USD)
  2. USD-backed stablecoins (e.g., iUSD, USDC, USDT)
  3. Cardano (ADA) cryptocurrency
  4. INDY token

Invoices will be issued at the end of each month and will be payable within 30 days of the invoice date (e.g., services for May invoiced June 1, due July 1).

Indigo Foundation Transition and Consultant Retention

Eric Coley, founder of Indigo Labs, will transition fully to supporting the Indigo Foundation in his role as Director. To ensure uninterrupted support for critical functions, the following team members have agreed to become independent contractors to the Foundation:

  • Daniel – Lead, Marketing & Community Management
  • Chris – Legal Support for the Protocol and Ecosystem
  • Jon – Product Lead for Foundation-driven initiatives
  • Advait – Quantitative Analyst and Data Science

These roles will be compensated through the remaining Core Team INDY allocation, which has been approved for use through December 31, 2025. At that point, the allocation will be fully depleted, and all roles and compensation will be re-evaluated.

Recap of DAO Proposal

By approving this proposal, the DAO is agreeing to:

  • Approve the retention of 3rd Eye Labs on the terms stated herein, subject to execution of a complete Services Agreement with the Foundation;
  • Approve the Foundation entering into consulting agreements with Daniel, Chris, Jon, and Advait, with each to be compensated from the Core Team INDY allocation through 2025.
11 Likes

This restructuring is a beautiful thing! The entrepreneurial path is embraced by Indigo’s senior technical resource and CTO in Cody Butz, while the Indigo Foundation grows its staffing ranks with key personnel and Indigo experts. Love it

4 Likes

What happens to indigo labs?

Indigo Labs is effectively dissolved and its key personnel restructured and going to either Indigo Foundation or 3EL

1 Like

Is the aim of this proposal to dissolve the Labs and replace it with 3EL (and the Foundation), or is the Labs already dissolved? I’m asking this because I don’t remember having voted for a dissolution of the Labs (Is this in the DAO’s attributions or in the Foundation’s attributions?). Could you please clarify this?

This proposal aims to replace Indigo Labs is the primary development services provider with Third Eye Labs “3EL” for ongoing development of the Indigo Protocol. 3EL will be comprised of the exact same (and more) technical resources that are on the Indigo Labs technical team currently. They’re simply wearing a different branded cap now, and same for the rest of the Labs guys that will shift to the Indigo Foundation. All current Labs personnel maintain their existing responsibility in supporting the Indigo ecosystem whether that be executive, development, product, marketing etc. Once more, just wearing different caps!

As for Indigo Labs future dissolution, this is a matter that is not within the DAO’s control as Labs is a privately held company. So there is not a DAO vote on that piece, though its covered here for the sake of ensuring the understood consistency of these people maintaining their roles now with either 3EL or Indigo Foundation.

The Indigo DAO controls the Indigo Protocol, but not its service providers as far as how those vendors handle internal affairs such as hiring, firing, dissolution etc. etc.

Hope this helps clarify for you!

5 Likes

Thanks for the clarifications! All good now.

1 Like

Of course, and you’re welcome!

Why is this being proposed? Im guessing legal?

Just trying to fully understand the rationale for making this change